FAQs: Informed consents for insurance commissions

This is Information Sheet 292 (INFO 292). It answers frequently asked questions (FAQs) about the requirement to obtain informed consent before receiving certain insurance commissions to avoid the commissions being classified as conflicted remuneration.

Australian financial services (AFS) licensees and authorised representatives that receive monetary benefits (e.g. commissions) as part of the issue or sale of general insurance, certain life insurance (see Question 2) or consumer credit insurance to a retail client (client) in personal advice situations must obtain informed consent from the relevant client to the benefit being given to avoid the benefit being classified as conflicted remuneration.

We have prepared these FAQs to help AFS licensees and representatives understand the requirement to obtain informed consent (referred to in this information sheet as the ‘informed consent requirement’).

For more detailed information, see ‘Where can I get more information?’ at the end of this information sheet.

Note: In this information sheet, all section references are to the Corporations Act 2001 (Corporations Act).

Where can I get more information?

For more information, see:

Important notice

Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. We encourage you to seek your own professional advice to find out how the applicable laws apply to you, as it is your responsibility to determine your obligations.

You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases, your particular circumstances must be taken into account when determining how the law applies to you.

Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.

This information sheet was issued in November 2024.

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Last updated: 21/11/2024 10:30